know futures trading

How do you Trade Futures?

We all want an additional source of income to supplement our primary income. Be it establishing a business, buying shares, investing in a business, or trading in the stock market. Rowan Relton stated that the sole aim is to make a profit and get more money. Rowan Relton is an Australian international trading professional with more than 10 years of experience.

A way of trading in the stock market is futures trading. It is used in stock and commodity trading and only experts can do futures trading.

What is Futures Trading?

To trade in futures, traders need to have futures contracts. Futures contracts are agreements signed for trading at a later date with a fixed rate, says commodity trader – Rowan Relton . It may be commodity trading, the farm produces trading, shares, digital currencies, and many more. It involves two parties and each has to accept the terms and conditions. They have to specify the number of goods to be delivered and the money to be paid on a particular day.

Futures trading is done by finance professionals like those who wish to invest, the suppliers, and buyers.

Stocks that are marketed on futures are cocoa, cotton, soya beans, grains, oil, and many more.

What to Expect as a Futures Trader

A futures trader can negotiate prices of goods or shares with sellers before the prices are fixed. This type of trading prevents traders from being affected by price volatility in trading. They are protected from price inflation or deflation.

Take this scenario; you are interested in buying corn with futures trading. You’ve seen a seller to buy from. You contact the seller, make futures treaties, and set a percentage and quantity. You propose to purchase 1kg of corn for $100 every month for a year. Three months later, the cost of corn increased to $150. It won’t affect you because you and the seller have agreed to a cost of $100.

On the other hand, if the cost of corn decreases to $50, it won’t affect the corn-seller. You have to pay the seller the fixed cost of $100.

In both scenarios, the seller or the buyer will be protected one way or the other.

Futures investments are for those interested in earning incomes if the cost of goods fluctuates. They want to use stock value and exchanges to make profits. The opportunity is there and numerous because many people trade every day.

Risks Associated With Future Investment (or Trading)

All businesses, trading, and investment have risks associated with them.

Some people take up loans just to do futures trading. Some may even get huge loans from banks, friends, families, or financial institutions to play big. It is their way of making huge profits if futures trading favors them. The downside is that loans add to the stakes involved in future investment. If their future trading doesn’t favor them, they lose money and their effort. Apart from that, they will need to pay back the loan with its interest. If they fail to pay on time, the interest on the loans increases, or they may lose their collateral.

Futures Trading Tips

To trade futures, you need to know some technical terms and have adequate knowledge.

There are rules governing future buying and selling. They are:

  • Margins rules
  • Leverages rules

These rules are not as strict in future investment as in normal trading. There are leeways for buyers and sellers.

If the leverage is huge, profits and possible risks will be huge. A buyer or seller may win or fail to based on the future cost of the products. Hence, both of them should be cautious when doing futures trading. There are other types of trading to do if the risk involved in future investments is unmanageable.

Who Is A Future Investor?

To be a futures merchant is not that difficult, but it’s advisable to have the guidance of professional brokers. Sign up with expert brokers who have experience in the particular commodity you’re interested in. You also have to disclose your finances and the budget available for the deal to the agent.

Your finances and budget will determine how much you can use to trade. It will also affect the kind of risk you may put up with. The type of assistance the agent offers will determine his fee structure.

You can also go online to register a futures investment account and try a demo version to practice. It facilitates real-life exchange and accustoms you to the method, risk, and benefits associated with trading, says Rowan Relton.

These demo versions show you the power and limits of futures trading with online tools. Demos teach you how to purchase, trade, and make profits in real-life situations.

Once you’re accustomed to the way futures trading works, then you may start the real trade.

Conclusion

Futures investment is riskier for novices but experts manage the risk better. Hence, it’s advisable to practice with demo versions online. Many futures experts try digital trading first then proceed to the real trade.

Futures trading is one of the best ways to protect traders and investors. Especially those who live or trade-in countries with unstable economies.

Originally Published

pairs trading

What is Trade Pairing?

According to Rowan Relton, pairs buying and selling became first delivered in the mid-Eighties via a set of technical analyst researchers that have been hired through Morgan Stanley, the multinational funding bank and economic services organization. The pairs trade strategy uses statistical and technical evaluation to seek out potential market-impartial profits.

Today in this article, Rowan Relton will talk about what pairs exchange is, how it works, and everything regarding that.

What’s a Pairs Exchange?

A pairs exchange is a buying and selling method that involves matching a long function with a short position in two shares with a high correlation.

KEY TAKEAWAYS

A pairs exchange is a buying and selling method that involves matching a long position with a quick role in two stocks with a high correlation.

Pairs buying and selling were first added inside the mid-1980s by way of a set of technical analyst researchers.

A pair’s trade strategy is primarily based on the historic correlation of two securities; the securities in a pair’s alternate should have an excessive high-quality correlation, which is the primary driving force at the back of the method’s earnings.

Market-neutral strategies are a key thing of a pair’s alternate transaction, says Rowan Relton. It involves lengthy and quick positions in exclusive securities with an advantageous correlation. The two offsetting positions form the idea for a hedging approach that seeks to take advantage of either high quality or terrible trends.

A pairs trade strategy is primarily based on the historic correlation of two securities. The securities in the exchange of a pair have to have an exceedingly high-quality correlation, that’s the number one motive force in the back of the method’s profits. A pair’s alternate approach is finely deployed when a dealer identifies a correlation discrepancy. relying on the ancient perception that the two securities will preserve a specific correlation, the pair’s exchange may be deployed while this correlation falters.

While pairs from the alternate in the end deviate—so long as an investor is using a pairs trade approach—they could be seeking to take a dollar that matched the lengthy role inside the underperforming safety and promote briefly the outperforming security. If the securities return to their historical correlation, a profit is crafted from the convergence of the costs.

Benefits and disadvantages of Pairs alternate

When a pair’s exchange plays as predicted, the investor income; the investor is also able to mitigate ability losses that would have come about inside the process. Income is generated while the underperforming protection regains value, and the outperforming protection’s rate deflates. The internet income is the entire win from the 2 positions.

There are several limitations for pairs buying and selling. One is that the pairs alternate is based on an excessive statistical correlation among securities. Most pairs trades would require a correlation of 0.80, which can be difficult to pick out. 2d, at the same time as historical trends may be accurate, past expenses aren’t usually indicative of destiny traits. Requiring the most effective correlation of 0.80 also can decrease the probability of the predicted outcome.

Example of Pairs exchange

To illustrate the capability income of the pairs trade strategy, consider inventory A and stock B, which have a high correlation of 0.95. The two stocks deviate from their ancient trending correlation in the short term, with a correlation of 0.50

The arbitrage trader steps in to take a greenback matched the long function on underperforming stock A and a quick position on outperforming inventory B. The shares converge and return to their 0.95 correlation over time. The trader earnings from a long function and closed brief position

Conclusion

To conclude, pair buying and selling are frequently classified as a marketplace impartial approach due to the fact the shares are lengthy and brief at the same time. This concept is flawed because the contradictory positions are held on unique stocks. It is pertinent to observe the dangers involved in pair trading and the cause is to enjoy the relative values of both securities. Equity professionals at IIFL assist you to understand the risks and benefits, making them the best advisors on your journey through inventory market trading. But, to leverage profits from pair trading, the securities ought to be correlated in any respect fees.

The correlation between the shares has to be a minimum of zero, says Rowan Relton.  As the world is gaining more knowledge about trading it is getting more and more popular among the people. But what people do not understand is the market risk that is involved in the process so before devoting yourself to the trading market be very sure to understand and get knowledgeable about the trading market and the best way to do that is by using the internet as your biggest friend.

Originally Published

Russia Continues to Steal the Grain Market Limelight

In the week before the USDA released the latest chapter in its Intriguing but never-ending world agricultural supply and demand story, it was Russia that took central stage, confirming plans for the introduction of grain export quotas in the new year, as well as possible changes to the existing export.

Food inflation in Russia is at a five-year high, prompting the strengthening of export restrictions. In order to ration supplies, the global wheat price continues to climb. The new policies are intended to reduce inflationary pressures by expanding supply to domestic customers and bolstering upcountry inventories.

The statement by the Ministry of Agriculture on Wednesday caused some market misunderstanding about the planned limits’ true start date, as it mentioned January. The exact specifics of the export limitations on a variety of commodities, including wheat, are expected to be finalised in December and disclosed in January. The new export quotas are set to begin on February 15, as previously announced, and will last through the conclusion of the 2021/22 marketing year on June 30, 2022.

The final 2021/22 output and the speed of exports in the first six months of the marketing year will decide the amount of the wheat quota. The Russian government cut its wheat output forecast to 75 million tonnes in late October, down 10 million tonnes from the previous season. This is in line with market expectations, with private forecaster Sovecon predicting 75.5 million tonnes, the Institute for Agricultural Market Studies (IKAR) predicting 75-75.6 million tonnes, and the USDA predicting 74.5 million tonnes, up 2 million tonnes from its October forecast.

Tax Tweak

Moscow has two alternatives if the global wheat market continues to surge, which is extremely likely given the present supply and demand mismatch. It has two options: lower the base price, which is now $200 per metric tonne for wheat, or hike the 70 percent tax rate. Or, I suppose, the government might do both; such is the unpredictability of Moscow’s leadership.

A tighter global wheat balance sheet collides with a weak domestic output year, creating a problem for Russia. In recent years, Russia has become the world’s largest wheat exporter. Importers are interested in Russian grain, but Russian farmers refuse to sell. They understand that when international wheat prices rise, exporters will be able to pay more for their crop. In theory, for every dollar rise in the export price, the farmer bid should climb by 30 cents. However, if the exporter is under pressure, it will almost certainly be higher. Of course, the Russian government receives the remaining 70 cents.

Although reliable and timely data is difficult to come by, Russian wheat exports allegedly totaled 15.3 million tonnes in the first four months of the 2021/22 marketing year. This is about 19 percent less than the 18.8 million tonnes delivered during the same period previous season. Wheat exports from Russia’s Black Sea ports are already decreasing as the export duty rises dramatically every week.

And, once Europe’s winter cold comes in, maintaining the current rate of wheat shipments will be untenable. Even a monthly export rate of 3 million tonnes would be rather optimistic, putting exports at 25.8 million tonnes by the time the restriction is implemented on February 15. When the $60/t flat export tax was implemented earlier this year, Russia only exported 2.5 million tonnes of wheat from March to May. By the end of the season, the floating tax might reach $100 per tonne, or perhaps more.

Originally Published

Commodity Crashes

Commodity Crashes and Fear of Inflation in Australia

Rising interest rates, commodity crashes and fear of inflation could spell a disaster for the Aussie economy but everything might not be quite as it seems.

Last week Australia witnessed a historic breaking of the Reserve Bank of Australia by markets. At the start of the week, the RBA was insisting that it would not lift interest rates before 2024. By Friday, it had capitulated to bond market pricing that it would hike rates five times in the next year.

The first was building global inflation panic around supply-side constraints in the global economy arising from Covid distortions.

The second was a firm local inflation print that pushed the core consumer price index (CPI) within the RBA’s 2 to 3 per cent band for the first time in six years.

Trading Agricultural Commodities

According to commodity trader – Rowan Relton, impacts on global commodities have been felt immediately by consumers, with delays in the delivery of well-known products and market concerns over the supply of oil and other commodities to many countries.

Today in this article, the commodity trading expert – Rowan Relton, will tell you about tips on how to start trading agricultural commodities and everything that you need to know before starting trading agricultural commodities.

Why Trade Agricultural Commodities?

1. Trading Leverage

Because contracts are traded on margins, dealers can leverage their trades for a fraction of the contract’s true value.

2. Liquidity

It’s just as simple to sell or purchase futures, and traders may readily liquidate their positions anytime they need to.

3. Transparency

The Trading Platform displays real-time market values in a clear manner.

4. Market Coverage

Agricultural commodities come in a variety of forms, allowing you to put your trading talents and knowledge to work on the most suitable asset and market.

Ways to Start Trading Agricultural Commodities

Such an occurrence would appear to be unavoidable, but the worldwide market would not be well-suited, as in the case of Coronavirus (COVID-19). Hundreds of cargo ships are still apprehensive about their future journeys, resulting in longer delivery times and higher expenses.

Furthermore, because to the interruption of procurement caused by the COVID-19 pandemic, there were pre-existing delays for items that were already waiting to be loaded, as well as when the condition of commodities was confronting a lack of containers. All of this involves a key issue that is already causing substantial friction in the marketplace.

Agricultural product commerce, such as natural rubber, is still an unpredictably volatile market that relies on conventional paper methods in many circumstances. Almost all pricing categories, from producers to processors, retailers, and retailers to consumers, include delays and inefficiencies. This increases the risk of inflation and volatility, resulting in areas where performance may be improved across the whole supply chain, providing additional opportunity for all market players. The existing hazards of moving agricultural assets will be addressed by more open access to trade financing and insurance, as well as more alternatives in suitable trade agreements and futures.

All of this may be fixed by combining superior technology with professional knowledge to guarantee that all market segments are linked and all known data points are incorporated. For example, digital transformation may aid in the funding and organization of commercial financial transactions, taking into account hazards associated with consignment, particularly in the transit of commodities.

1. Technology to Drive Efficiency in the Sale of Goods

The technology is being used endlessly in the agricultural commodity industry and will eventually be promoted. The Boston Consulting Group has indicated that $ 70 billion will be generated from rising costs from real estate investments that include appropriate technology. In addition, the COVID-19 epidemic has created additional momentum for change, with new digital remote operating systems demonstrating the efficiency of many traditional companies. Eventually, a growing number of Internet connections are reaching rural areas where agricultural products are grown, such as natural rubber. This makes digital connectivity and its compliance benefits a reality for many market participants.

2. Better Access to Information and more Advanced Party Frameworks

The capacity to make the best judgments by receiving the correct information, at the right time, and in the right way is one of the primary benefits for all market players who utilize digital technology, says Rowan Relton. Another advantage is the availability of large data and data for processing how agreements might be structured such that profits are shared among all market players. To preserve set market pricing, for example, or to design stock market methods to protect producer money, for example. Because of the inherent risks associated in the transit of products, as mentioned in the Suez Canal prohibition, digital technologies and platforms provide an excellent setting for these operations to take place.

3. Effectiveness in Improving the Margins of Big Business

Digital inclusion is critical for reducing fraud risks associated with CAD paper methods and for speeding up these procedures. Furthermore, cloud-based security solutions can offer non-standard companies with access at any time and from any location. Faster pricing, trading, real-time data interchange, comprehensive risk management, and smooth post-trade processing will all be possible with contemporary technology.

Small firms’ inability to invest in technology has hampered the adoption of digital technologies in the agricultural commodities market. However, with today’s independent, collaborative platforms, this is no longer an issue. Small companies may now use pay-as-you-go models to expand their profile and take advantage of organized services and support services, such as automated contracts, financing, and marketing access to global markets, without incurring past expenditures.

4. Technology is the Future of Agricultural Goods

Using technology can grow genes and develop new methods, support the natural rubber industry in its recovery and keep it in its next growing season. Allows the information to be used effectively, in a timely manner, to eliminate conflicts within purchases, to drive better decisions and better outcomes for all, and to ensure that there are better acquisition and pricing plans in place.

Wrap-up

You’ll have a far higher chance of succeeding if you do your homework and understand the markets you’re trading, as well as prevent overtrading or “gambling.” You could also get wealthy if you can become an expert in your chosen commodities market.

Aligning the right organization with the right opportunity – as a result of your own – of big business as a whole is now possible. This provides support to the agricultural commodity industry to overcome its recent decline and is more focused on sustainable development goals. Here in the above article, Rowan Relton – commodity trading expert, talked about some tips on how you can start trading agricultural commodities and everything you need to know about agricultural commodities before starting to trade them.

Originally Published

Introduction to Soft Commodities

Introduction to Soft Commodities

According to commodity trader – Rowan Relton, soft commodities are one of the older assets that are being traded but not as much as hard commodities. Agricultural products such as coffee, cotton, sugar, wheat, soybeans, rice, and different types of livestock are grouped under soft commodities.

The soft commodities market comprises all the agricultural products groups under soft commodities and is not a market for everyone due to the risk involved. Commodity markets affect every area of our lives daily and the global economy at large. Many traders that want to diversify their portfolio of bonds and stocks have been considering soft commodity trading.

Soft commodities play a very important role in the futures market. Futures contracts are used by farmers to lock in the future price of their products and traders that want to make a profit. The uncertainties of pathogens, weather, and other risks involved in soft commodities make it more volatile than other futures. Seeding/harvesting reports and weather can significantly affect the price of grain and oilseeds and as a result, impacting contracts value based on the delivery dates.

Today, Rowan Relton will discuss more about the soft commodities trading.

How to Trade Soft Commodities

Soft commodities trading in the physical market includes the growing and selling of commodities in their normal form after undoing primary processing. Normally traders specialize in a certain soft commodity and markets from which they can sell to and buy from. Soft commodities trading can be done both in future and spot markets.

Future Markets

Soft commodities trading can be done in future markets where people make use of futures contracts to buy or sell commodities at a certain price and time in the future, Rowan Relton says. So traders can decide either to hold their positions or release them early to make a profit. Commodities traded with futures are more volatile and at higher risk, because there can be huge fluctuations in price. Reason being that it is quite difficult for traders to make a precise prediction of the future market price.

Spot Markets

Spot markets have to do with real-time prices, which means one can buy and sell instantly at the spot (real-time) price. In spot markets, the investors make the spot price once they post their buy and sell orders. The moment orders are made and there is a new one in the market, the spot price can change. Spot positions have no expiry date therefore one can hold the position for long which is why some traders prefer trading soft spot commodities like spot wheat. Contracts for different (CFDs) make it possible for traders to hold their position for long. An acquired product with an agreement between the trader and broker to pay for any difference in price from the beginning of the contract till the end. The fact that traders are exposed to the soft commodities market without buying ETFs, shares, options and futures is one of the benefits of contract for difference (CFDs).     

Some Soft Commodities That Can Be Traded

Sugar: sugar is made from a processing sugar cane and is traded in a contract that represents 112,000 pounds of sugar. This is expressed in cents per pound. The minimum price movement of sugar is around $0.0001 per contract. Sugar cane grows better in tropical areas and one of the largest exporters and producers of sugarcane is Brazil. The countries with the largest importation of sugar cane are the U.S.A, European Union, Malaysia and China. The raw product that is extracted from sugar cane is raw sugar. The harvested sugar is crushed to get raw juice. Refined sugar is generally known as white sugar is purified sugar and is what consumers mostly use.

Coffee: coffee is said to be one the most traded soft commodities and is traded in cents per pound. A contract of coffee is about 37,500 pounds of coffee. It is the second-largest export in the world in value after oil. For coffee to grow it needs a subtropical climate. 30% of the world’s coffee exports are produced in Brazil. Arabica, Green and Robusta are the most traded coffee types.

Cotton: is a soft commodity that is in high demand by textile companies for its use in clothing. Cotton trading focuses on the distribution of the varieties and grades of cotton such as upland, short-staple, Pima, and long-staple cotton.

Cocoa: cocoa trading is in dollars per metric ton with one contract at 10 metric tons and is grown in a tropical and humid climate. Indonesia, West Africa, Ecuador, and Brazil are the main producers of cocoa. The purest form of chocolate is the bean which is usually processed. Derivatives from cocoa include cocoa butter, cocoa powder, and more.

In conclusion

To profitably trade soft commodities you need to do proper market research, understand the market, and know the type of contracts to use, says Rowan Relton. A soft future contract is a legal agreement for delivering soft commodities at an agreed price in the future.

Originally Published

Rowan Relton - Invest in Gold

how to invest in gold in Australia?

Rowan Relton is an Australian who has more than a decade of experience as an international commodity trader. He has traded in Gold and other valuable commodities. 

“Gold is an extremely valuable commodity that appreciates over time,” explains Rowan Relton. You can never go wrong with real gold.

Even if the stock market goes down, the price of gold increases in retrospect. Therefore, it is to make some investment in gold.

Why should you invest in gold?

Gold is an exquisite and rare commodity with a distinct luster and durability. In the olden days, gold and silver were used to make coins as a medium of exchange. Gold does not erode due to its ability not to be easily affected when mixed with other substances. You can store gold for an extended period and it won’t corrode, or reduce in length. Gold is another means of saving money and reliable investment.

Gold is used even in the 21st Century and its value has not decreased. Gold is used to diversify because its value doesn’t fluctuate nor volatile.

How to invest in gold in Australia

There are three ways of investing in gold in Australia. They are:

  • Invest in gold mining firms.
  • Purchase the real gold.
  • Invest in gold stocks.

Invest in gold mining firms

Esquire Commodities can source reputable miners or mining firms for you. They help you make the best and most profitable investment. They help their clients navigate the stock market, Rowan Relton says.

Gold stock market investment is quite common in the finance world. You don’t need to buy, store and insure the gold. Ownership of gold is done virtually, that is, you didn’t buy the actual gold.

Due to this, it comes with risks unlike purchasing the actual gold. The stock market is not stable, so any commodity being traded on the stock market is unstable. It doesn’t matter whether it is gold, a stable commodity itself. Be careful when you invest in a gold mining firm. If the firm is not financially buoyant, it may go bankrupt. You may lose your money and the commodity. 

To prevent this, buy lots of EFT gold. EFT tracks the volatility of the gold market.

Invest in gold stocks

Esquire Commodities Pty Limited is a well-known brokerage company that helps clients buy and sell gold. They have a website that allows users to trade gold in stocks. The website is easy to navigate, has a CFD trading alternative for users. If you are new to gold trading, their website is simplified for laymen to understand.

Instead of buying real gold, investing in gold with Esquire Commodities Pty Limited is an alternative. You can generate revenue from the investment.

Purchase Real Gold

You can purchase the actual gold with the help of Esquire Commodities Pty Limited. It comes with lots of risks though. After purchasing, you need to keep it safe and insure it.

How is gold trading done in Australia?

Esquire Commodities Pty Limited is located in Australia with a profound knowledge of its clients. They have been in the business for a long time and know what their clients want.

A trader can use the company to evade the instability of stock markets. They help clients trade gold via CFD. They diversify clients’ portfolios and help them get profits.

Esquire Commodities Pty Limited gives you more than one account to trade with at no charge.

Esquire Commodities Pty Limited has a website with the same name that allows the user to own and trade gold virtually.

Conclusion

Gold is an exchangeable asset that never depreciates unlike other assets no matter what the economic situation is, says Rowan Relton. It does not only protect your fortune but it can increase your revenue.

Cryptocurrency Indicators

All About Cryptocurrency Trading Strategy

We have all witnessed the rise of cryptocurrency in recent years. The jump in the prices of cryptocurrencies has attracted many people to invest, says Rowan Relton. However, there are still major uncertainties regarding the subject that cause people to restrain from investment. 

In this article, Australia’s commodity trader Rowan Relton will tell you about some of the best cryptocurrency trading strategies.

Who is Rowan Relton?

Rowan Relton is a trading professional with over 15 years of successful experience in trading in international commodity trading and arbitrage.

What is Cryptocurrency?

It is a form of payment that can be used to exchange online goods and services, letting you buy goods and services and trade them for profit. The currency works by using a technology named blockchain, a decentralized technology spread across computers that manage all the transactions and records. It is quite similar to stocks, currency, or commodity trading.

If you want to start trading cryptocurrency, you need a solid trading strategy. To develop certain strategies you need some indicators that can help you cook strategies that will help you in crypto trading. Here are some indicators that will help:

1:- Ichimoku Cloud Indicator

This cloud indicator has a collection of technical analysis tools, including all the help you need in one all-inclusive indicator, says Rowan Relton. It has multiple features like finding support, indicating entry and exit signals. Ichimoku cloud indicators determine the current strength of a trend. This indicator was created by Goichi Hosoda to predict the movement of the Japanese Nikkei index.

Trading strategy

Before using the indicator it needs to be set up properly. Originally settings for this indicator were 9, 26, 52, 26. But the setting to trading cryptocurrency has recently changed to 20, 60, 120, 30.  The difference between these settings occurs because of the difference in the hours of trading between cryptocurrency markets.

2:- Relative strength index

Indicators are basically a graphical representation that shows functions and formulas that can help you as a trader to stay one step ahead and predict future crypto asset prices. It is technically one of the most popular cryptocurrency indicators. As its name suggests, the tool helps you measure the strength of a trend and the price of a digital asset. The RSI can swing back and forth between 0 to 100 and the middle line, 50 separates the fall and rise of a trend. For example, if the signal moves and takes a leap above 50, the uptrend is firm. If it falls to below 50, the trend is bearish.

Wrap-up

Contrary to major beliefs, cryptocurrency is neither a kind of gamble, nor a tool to help people get rich overnight.

Cryptocurrency trading is certainly not a gamble. Without the accurate tools and indicators, one could fail terribly in the cryptocurrency market. The most important thing when stepping foot into this market is to learn continuously. Without the sufficient and updated knowledge, you would miss out on the ongoing trends and thus, fail to compete with the rest on the market. Beware and keep all the dangers in mind.  If this market can give you a lot of money, it can take an abundance of that away too, recommended by Rowan Relton.

Forex Trading in Australia

Facts about the Forex Trading Australia

According to Rowan Relton, the trading market fascinates everyone with its number of rewards. However, most people are not aware of the dangers it has. In today’s article, we will talk about everything you want to know about Australian forex trading.

The word ‘Forex’ was derived from the term “foreign exchange”. But what exactly is foreign exchange? If you have not yet known, you’ve come to the right place.

Foreign exchange is a type of market where investors trade international currencies against one another. The shift in exchange rates decides whether you will gain profit or on the contrary, have a loss in this market.

Due to the continuing exchange of currencies, the market shifts and moves almost every minute. The exchange market is so big that it makes the stock market look small in comparison. With its nature of not being owned by any government body, one has the ability to deal with buyers and sellers independently.

Growing in popularity within Australia, the Forex trading market is attracting more and more citizens, which leads to the spike of the Australian dollar amongst other currencies.

Know about the facts about forex trading in Australia with Rowan Relton.

Getting started

Anyone that wishes to enter the market has one question in mind, how do I get started? The first and most important step is to find the right broker, says Rowan Relton. There are so many brokers with their strengths and weaknesses. It takes time and effort researching for your most fitting professional. Though the market moves rapidly, keep in mind that you should not rush while choosing a broker, as it is the utmost important process. One wrong step can cost money and time, which is detrimental in this sort of market.

Forex Trading and More

Forex trading involves currency pairs, meaning the practice of purchasing and selling currency at the same time. The first currency in the listing is called the base, whilst the second is called quote currency. Let us analyse it with an example: if the US dollar (USD) is the base currency and the Australian dollar (AUD) is the quoted currency, one would be buying USD and selling AUD.  The buying price at which the trader buys the quote currency is named ‘bid’. The selling price is known as ‘ask’. Forex markets deal with almost every currency available and there is no limit to which currency you can trade-in, you can live in India and buy AUD you can buy any currency pair you like. How people make money in forex trading, experienced traders keep an eye on and understand the changes that are likely to occur. 

Regulations

No interference from the government means it is not centralized which means it is more likely to be a fraud-prone market. So how does it keep and maintain laws and regulations? Australian securities investment commission this organization keeps an eye on everything from maintaining standards to the rules and regulations. The ASIC maintains a list of names of the brokers that match the market standards and that are certified by the ASIC. These brokers are highly experienced and less likely to fraud you as they are certified and by the ASIC.

Conclusion

The forex market is active 24/7 but the time zone can differ from place to place, it stays open 6 days a week and it remains closed on Sundays.

The foreign exchange market or forex is gaining popularity worldwide because of the high returns that it can give. But most people don’t know that no matter how appealing it may look from the outside it has its own negative features as well. People with less knowledge about this should not enter it without learning about it as it can cause them a huge loss. So where can you educate yourself about this trading market?

The Internet is the place that can solve your problems, if you are eager to learn about how the forex market works there is no better place than the internet to get started. There are people like Rowan Relton with more than 15 years of experience that can teach you about how the forex market works. There is more to that, there are also many paid courses that you can pursue to learn about the forex and then step into this market. Before getting into it make sure you have a good consultancy, and do your research well, and don’t hurry with anything. Hurrying will not only cost you a fortune but also the time that is the most important factor that can increase or decrease the profit or can cost you to bear with a loss.

Originally Published

Become Commodity Trader

Career Guidance for Commodity Traders

According to commodity trader – Rowan Relton, commodity trading is a profession that has been around long before stocks and bonds trading even exists. Commodity trading is a part of the financial market that is rapidly changing. In this type of trading professionals trade commodities and then buy or sell for individuals or organizations. Commodity traders trade in different markets and provide financial planning services to clients. 

Commodity Trader

A commodity trader is a professional individual or organization that invests in physical commodities such as agricultural products, oil, silver or gold by buying or selling them through an exchange market. Commodity traders do have an in-depth knowledge of the factors that affect price of commodities and their values. As a commodity trader, you work in a corporate environment like a futures commission merchant or stockbroker firm.

Skills You Need As a Commodity Trader

Commodity trading is a professional job within the financial industry, says Rowan Relton. Therefore effective communication, the ability to think critically, understanding the financial market, knowing the investment formulas, understanding sales techniques, vast knowledge of commodity trading process and ability to make a decision quickly are skills that are expected from a commodity trader.    

Becoming a Commodity Trader

Commodity trading is a professional job so to become a commodity trader there are some steps you are expected to take which are:

1. Help Your Career through Education

Though you don’t need a PhD or college degree to get into commodity trading. As there are companies that employ those with an undergraduate degree in finance or any related field. To get qualified for certification in the financial industry you might need to get a four-year degree. Also, many investment companies prefer a candidate with an MBA for high-level positions.

2. Gain Position with Commodity Trading Firm

To qualify for the license exam, you need to earn a position with a commodity firm. The firm will help provide materials and guide you to study for the licensing exam. Also to help you become an independent professional trader.

3. Register For commodity Trading License and Get Tested

The series 3 exam is the official licensing assessment for commodity traders. As soon as you pass the series 3 exam you can register with the National Futures Association as an associated person. You can do the test and registration when you start working with a commodity firm. The exam tests you on governing rules in commodity trading and knowledge of commodity markets and futures.

4. Get Experience

After getting you licensed, a constant practice of dealing with clients and commodity trading can help you gain experience, says Rowan Relton. As a beginner, you will be entrusted with small accounts. And once you become skillful in commodity trading with buying and selling of commodities through practice you can then be trusted with large accounts.

In Conclusion

Depending on the state of the market a commodity trader must be able to make a critical and fast decision. It can be a physical marketplace or online where there is buying and selling of commodities.

Originally Published: https://themeganews.com/education/become-commodity-trader